IBM: Blockchain use for legal cannabis distribution

Apparently, the technology group IBM intends to use the blockchain technology in the future to optimize cannabis sales. The blockchain can increase consumer safety and simplify the regulatory overview of the distribution of the product.

Accordingly, IBM wants to exploit the potential of the blockchain for the distribution of cannabis in the states or regions in which the substance is legally to acquire. This is evident from a document published by the Government of the Canadian Province of British Columbia. The IBM initiative comes at a time when British Columbia is working on a regulatory framework for the legalization of cannabis in the province.

The paper states that IBM wants to provide its extensive knowledge of various technologies to help British Columbia find a mechanism. IBM believes that Blockchain is the most appropriate technology to track the entire cannabis supply chain – from planting to final sale.

Both the government and the producers and distributors of cannabis benefit from the use of blockchain. The blockchain helps the provincial government gain control over the entire creation process. The origin, the sale and the pricing of the sold product can be tracked by the state. The government can then pass on this data to producers with whom it cooperates. Thus, the respective producer could be aware at an early stage about the supply-demand ratio and recognize consumption trends, according to which he could address himself.

While the Government of British Columbia has not yet made it clear which distribution model it will adopt for cannabis as soon as a regulatory framework exists, IBM believes the government itself will want to play a role in it. Again, an interconnected blockchain network can help maintain clarity, provide a feedback mechanism, and possibly even make predictions.

IBM continues to be one of the pioneers in the use of blockchain technology.

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.